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Forums - Gaming - AMD lost $180 million and GPU market share in Q1

daredevil.shark on 18 April 2015

 

"PC gaming and gaming in general is a growth opportunity in the market and a growth opportunity for AMD" - Lisa Su, CEO

AMD made a $180 million net loss in the first calendar quarter, as the chip-maker continued to fall behind its biggest rivals.

Overall, AMD earned $1.03 billion in revenue in Q1, a decline of 26 per cent over the same quarter last year. The company lost $180 million, significantly reduced from a $364 million loss in the first quarter of 2014. On a non-GAAP basis, the company lost $73 million.

That reduction in its GAAP losses is partially down to the drastic reduction in its workforce last October, when AMD cut 700 jobs following a weak Q3 for its Computing and Graphics segment. The general manager of Computing and Graphics resigned his post in January.

That segment, which includes graphics card sales, was also a significant contributor to AMD's precarious position in Q1. Computing and Graphics made 38 per cent less revenue year-on-year due to "challenging conditions" in the PC market.

"Challenging conditions" may be executive speak for rival company Nvidia, which has been steadily eroding AMD's market share since it launched its GTX 970 and GTX 980 graphics cards in Q3 last year, as well as posting record revenue in Q4 2014.

According to data posted by the prominent analyst Jon Peddie, Nvidia had a 76 per cent share of the graphics card market in Q4 2014, leaving AMD with the remaining 24 per cent. However, that proportion was 65 per cent and 35 per cent just one year earlier. That will be a huge concern for AMD's investors, particularly when the company is telling them that "PC gaming and gaming in general" is a "growth opportunity in the market and a growth opportunity for AMD."

In the same investor call, AMD CEO Lisa Su indicated that several product launches later this year would help it to achieve that growth.

"Building great products, driving deeper customer relationships and simplifying our business remain the right long-term steps to strengthen AMD and improve our financial performance," Su said in a statement.

"Under the backdrop of a challenging PC environment, we are focused on improving our near-term financial results and delivering a stronger second half of the year based on completing our work to rebalance channel inventories and shipping strong new products."

 

Source: http://www.gamesindustry.biz/articles/2015-04-17-amd-lost-USD180-million-and-gpu-market-share-in-q1



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vivster on 18 April 2015

And that's going to continue in the next quarter because the next GPU gen is still far off.



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Jizz_Beard_thePirate on 18 April 2015

Grr, I hope Amd can recover to profitability once again cause we need competition in the PC market and AMD gpu/cpu's are in the ps4/x1 for better or for worse so hopefully, they can stop the bleeding eventually



                  

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bunchanumbers on 18 April 2015

What about that new client that AMD got with the new architecture for their new hardware? The one that was rumored to be Nintendo? Not even that has helped? Its so strange that AMD is losing money considering their hardware is in every Gen 8 console. I hope they roll out that stacked memory stuff soon. It would go a long way towards their return to profitability.



Zappykins on 18 April 2015

I hear they have a new 18 core CPU about ready to come out. And hopefully with Windows 10 and DirectX12 there should be a big hardware step up as it's been rather stagnate for about a decade.

DirectX 12 should make much better use of those multiple CPU/GPU combos. And with a rumored half a terra byte RAM limit we should have a new higher.

Today's computers become yesteryears super computers.



 

Really not sure I see any point of Consol over PC's since Kinect, Wii and other alternative ways to play have been abandoned. 

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Chazore on 18 April 2015
Captain_Yuri said:
Grr, I hope Amd can recover to profitability once again cause we need competition in the PC market and AMD gpu/cpu's are in the ps4/x1 for better or for worse so hopefully, they can stop the bleeding eventually

This.

As much as I love Nvidia at times and buy their cards and tend to prefer their brand, I would like AMD to remain profitable and be a stern competition towards nvidia because that in turn causes Nvidia to scrabmle a bit and price down their cards/make more affordable cards as time goes on, if AMD don't do much then Nvidia gobbles up more of the market and stagnates while refusing to lower the price, I really don't want to see such a scenario happening.

It amazes me though that even with their hardware supporting current gen systems that they still aren't gaining that much ground, I mean they have their fingers in both PC and the console market and yet Nvidia having theirs in mobile/PC is making them unmoavable for the time being that I'm left scratching my head.

Also I still want Nvidia to answer properly for the 970 fiasco.



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dharh on 18 April 2015

Part of the issue with AMD these last few years are stuff this:

I currently own a top of the line AMD motherboard that came out _3_ years ago. It currently is still top of the line. This is 2015. What the hell!?

AMD is still selling underdog products. Which basically means they sell CPUs and GPUs that are meant to be more cost efficient rather than the most powerful or even necessarily energy efficient.



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